EURJPY Price Analysis – December 26
The breakup of the $126 resistance level may push the price to $128 and $131 price level. In case the resistance level of $126 holds, the price may reverse and descend to the previous low of $116 provided the support level of $124, $122, and $120 does not hold.
Supply levels: $126, $128, $131
Demand levels: $124, $122, $120
Monthly Chart Trend: Bullish
EURJPY is under the control of the bulls in 2021. January this year, the bearish engulfing candle emerges; meaning that the bears were in control of the market in that month. The price decreased to the support level of $113 which is the low of September 2019. In May, the bulls defended the support level of $113 with the formation of the bullish engulfing candle, and the price increases to $126 in August after breaking up the $122 and $124. The price pulls back for two months to the $120 level. Another bullish engulfing candle emerges in November which is an indication that the bulls are taken over the market and the price may continue increasing next year.
The 9 periods EMA is crossing the 21 periods EMA upside and the price trading above the two EMAs indicate that a bullish trend has just been establishing in the EURJPY market. The breakup of the $126 resistance level may push the price to $128 and $131 price level. In case the resistance level of $126 holds, the price may reverse and descend to the previous low of $116 provided the support level of $124, $122, and $120 does not hold.
EURJPY Weekly Chart Trend: Bullish
GBPUSD is bullish in the weekly chart. The price action formed an arc on the weekly chart in 2020. The price touches the resistance level of$126 twice; the first attempt was made in September and the second was in November. The price is struggling to break up the $126 price level.
There is a tendency for the price to continue increasing in 2021 as the price is trading above the 9 periods EMA and 21 periods EMA. Also, the relative strength index period 14 is pointing up at 60 levels which indicates a further increase in price.